how to open a scotia savings account

Tangerine Bank, operating as Tangerine, is a Canadian direct bank and a subsidiary of Scotiabank. It offers no-fee chequing and savings accounts. Arvest Bank owns and operates 16 community banks in Arkansas, Oklahoma, Missouri and Kansas offering banking, mortgages, credit cards and investments. There are five major banks in Canada: Royal Bank of Canada (RBC); Toronto-Dominion Bank (TD Bank); Scotiabank; Bank of Montreal (BMO); Canadian.

: How to open a scotia savings account

How to open a scotia savings account
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How to open a scotia savings account
How to open a scotia savings account

A guide to student bank accounts in Canada

If you’re heading to university in Canada, one of the most important things you’ll need to sort out before you arrive is a bank account. Many Canadian banks offer great deals for students and can also provide advice on money management and budgeting. 

Whether you are an international or a domestic student in Canada, check out our table below to help you find the best bank account for you. 

1. Choose a bank

There are many banks in Canada, so the best way to narrow it down is to look at what the different banks offer students (see our handy table, below). Most bank accounts in Canada will waive monthly fees for students and offer perks such as points systems or discounts on savings accounts. 

It’s important to remember that in Canada, you will be charged a transaction fee every time you use an ATM from a bank that is not your own, so a good way to choose a bank is to see which ATMs are on your university campus or in your town. 

The next thing to think about is what your bank is offering you. As mentioned above, banks will usually throw in at least one offer or reward for signing up with them. Consider which of these are most attractive to you or will be the most useful. Some banks provide specific discounts based on the degree programme that you will be studying so it’s always worth checking if you are eligible for any of those.   

Think about whether you would like a credit card or a savings account as well. If you are considering either then considering what banks can offer you in these areas is a good way to narrow down your choice. 


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2. Choose an account

There are two different types of bank accounts in Canada: checking accounts and savings accounts.

Checking account: this allows how to open a scotia savings account to deposit and withdraw money as often as you like. Usually when you open a checking account you receive a chequebook and a debit card. Most international students will only need to open a checking account to pay for their living costs while studying in Canada. You may also be able to obtain a credit card through your checking account if that is something you are interested in. 

Savings accounts: this is a place to collect money over a longer term. Some students may consider opening one of these, if they are working or want to save money for travel or emergencies. 

3. Breakdown of bank accounts

There are many banks in Canada, so it is worth doing some research into the most suitable bank account for you. Here at THE Student, we’ve had a look around some of the major banks to see what they are offering students.

BankAccount nameMonthly feeExtras
BMOStudent bank accountPlus plan – $0
Premium plan – discounted monthly fees
Student budget calculator, mobile banking, BMO alerts, $70 cash bonus when opening an account, perks for medical and dental students
CIBCCIBC Smart for Students $0Receive $60 when opening a new account based on criteria, unlimited transactions, bonus savings for graduates, thousands of ATMs and branches, special bank account for medical or dental students
RBCRBC Student Banking$0Receive $60 when opening a new account based on criteria, receive a rebate on RBC Royal bank credit cards, no minimum balance, 
ScotiabankStudent Banking Advantage Plan$0Unlimited transactions, earn rewards on debit transactions, SCENE rewards, Scotia rewards, online and mobile banking, $60 welcome fee when opening a new account
TD BankTD Student Chequing Account$025 transactions per month, online and mobile banking, $75 bonus, no minimum balance
HSBCHSBC Canada Newcomers Programme $0Various cash bonuses for transferring money abroad, opening a bank account and paying bills among others, free ATM withdrawals in Canada
National BankStudent Bank Account$0 Discounts depending on field of study, credit cards and a personal line of credit, up to $100 signing up fee

There are also smaller or regional banks such as Canadian Western Bank and Laurentian Bank so it is always worth researching which banks are closest to the university you are attending and what they could offer you. A number of online-only banks also offer great student bank accounts, such as Tangerine and Simplii Financial.

4. How to open a bank account

Although it is possible to open a bank account over the phone or online, if you are an international student it might be easier to open your account in person in case there are any complications. When you go to the bank to open your account you will need two forms of ID out of the following:

  • Passport
  • Letter how to open a scotia savings account acceptance
  • Study permit
  • Temporary permit (IMM Form 1442, 1208, 1102)
  • Canadian or USA driver’s licence
  • Canadian government identification card
  • Travellers’ cheques

These requirements may differ slightly between banks, so make sure you check what your bank requires before heading over. 

Read more: Four tips for managing a student budget

Источник: https://www.timeshighereducation.com/student/advice/guide-student-bank-accounts-canada

How to Open a Bank Account in Costa Rica as an American

Banking in Costa Rica is not generally associated with offshore tax havens because national authorities cooperate with international agencies to prevent any illicit financial schemes or other financial crimes. In 2002, Costa Rica signed the Inter-American Convention Against Terrorism, which was created to stop the financing of terrorist-related activities including money laundering and drug trafficking.

U.S. citizens—and other foreigners—who live in Costa Rica as residents, students, or workers may have a legitimate need to open a local personal bank account. But it isn't as easy as it may seem, as there are restrictions and conditions that foreigners must meet in order to conduct financial transactions through their own bank accounts in the country.

So how do you get started? Here’s what you need to know to open a bank account in Costa Rica.

Key Takeaways

  • Policies vary by bank as to who can open bank accounts in Costa Rica.
  • Most banks allow foreigners with legal residency status to open accounts.
  • Expats are required to provide identification, a minimum deposit, proof of residency, and proof of income before they can open an account.
  • State-owned Banco de Costa Rica also allows non-resident foreigners access to bank accounts with certain restrictions.
  • Income must be reported to federal authorities as well as the IRS.

Residency

Foreigners have generally been unable to open bank accounts in Costa Rica unless they could prove legal residency. That meant they had to live in the country legally before being able to open and use an account. But as of 2016, foreigners—including those who are not residents—are able to open and maintain bank accounts with Banco de Costa Rica (BCR), one of the country's state-owned banks. This requires a valid form of identification and a cell phone number. Non residents are only allowed to deposit up to $1,000 USD into their accounts each month.

Most banks in Costa Rica, though, have different policies even today, and still require account holders to be legal residents before they can conduct any financial transactions. So it's best to check with each bank to ensure whether foreigners, whether they're residents or not, are allowed to open bank accounts.

Choosing a Bank

Banks in Costa Rica fall into two categories: State-owned or national banks, and private institutions. You can open an account in either category. There are two state-ownedbanks, Banco de Costa Rica and Banco Nacional de Costa Rica, and two state banks that were created by public law, Banco Hipotecario de la Vivienda and Banco Popular y de Desarrollo Comunal. Banco BAC San Jose, Scotiabank de Costa Rica, and Banco Promérica de Costa Rica are some of the private commercial banks that are available in Costa Rica.

There are some very important differences that separate the two types of banks. The state-owned ones, for instance, guarantee all deposits and typically have many branches and automatic teller machine (ATM) locations—a prime consideration for residents living in rural or remote areas. However, because they are the more popular option between the two, they are also known for their incredibly long lines. 

Private banks, on the other hand, generally have shorter lines and are more likely to employ bilingual staff which, in itself, can be reason enough to go private. They may also offer appealing transactional and cost benefits to Americans with whom they have already established a relationship in the U.S.

Opening an Account

Most banks offer accounts in Colones, the Costa Rican currency, or dollars. BCR also offers accounts in euros. A basic savings account represents the most common type of account and it’s also the easiest to open. That said, establishing a bank account in Costa Rica can be a laborious process, largely because of the huge amount of paperwork involved. Requirements vary among institutions, but they generally revolve around the following:

  • Identification (ID): Costa Rican banks require all resident foreigners to present their DIMEX ID card—issued by the immigration department—if they wish to conduct any banking transactions. Tourists, on the other hand, may simply how to open a scotia savings account their passports, and may only be eligible to open an account at certain institutions. 
  • Minimum Deposit: This depends on the type of account, but savings accounts usually require at least $25 USD or 5,000 Costa Rican colones.
  • Proof of Residency: You need to present a physical document such as a utility bill or lease agreement that states your local residential address.
  • Additional Forms: A local policy called “Conozca a Su Cliente”—Know Your Client—requires that any U.S. citizen with a Costa Rican bank, both individual and corporate, verify and update personal information every year. Various tax forms may also be required to inform the Internal Revenue Service (IRS) of offshore bank accounts.

Anyone opening an account at most Costa Rican banks must also provide proof of income. This is to ensure the funds used by account holders come from legitimate sources, and that consumers are complying with federal regulations by not laundering funds, financing terrorism, or trafficking drugs. Salaried employees need proof of income from their local employer, which may include a letter and/or pay stub. Independent contractors need to produce a letter or certification of income from an accountant. Other foreigners may also present proof of their assets from American banks.

Anyone who opens a bank account in Costa Rica must provide proof of income.

As noted above, foreigners, including those who aren't residents, can open an account with BCR. They must have legal status within the country, a valid passport, and a cell phone number. The bank also gives consumers the option to open accounts online, after which they receive their account numbers by email or text message.

Reporting Your Income

Costa Rica’s income tax rules must be observed by Americans who reside there, and U.S. citizens living and working abroad must report all worldwide income to the IRS on their tax return. Very costly penalties can apply if your income is not reported correctly.

It is possible for U.S. nationals to avoid double taxation on foreign-earned income through the foreign earned income exclusion and foreign tax credits. However, a tax return must be filed with the IRS to qualify for these benefits.

The Bottom Line

Once you’ve decided between a state-owned and private banking institution, opening a bank account in Costa Rica should be pretty straightforward as long as you meet all of the eligibility criteria.

While the banking system itself is fairly standard, procedures can be relatively slow, so it’s a good idea to practice patience. Customers are also advised to refrain from visiting branches and ATMs on local paydays to avoid even longer-than-usual lines. And remember, any American generating income in Costa Rica must closely observe both local and U.S. tax-reporting rules.

Источник: https://www.investopedia.com/articles/personal-finance/112415/opening-bank-account-costa-rica-american.asp

Saving for multiple goals? Finally, there’s a big-bank app for that

People rarely save for one thing only. Never mind retirement – even considering just short-term savings, we usually squirrel away money for multiple priorities, be it a vacation or replacing an aging furnace.

Until recently, Canadians had to link their bank accounts to spreadsheets or money apps in order to keep track of their progress toward their savings goals. For the less tech savvy, the option was spreadsheets or just good old envelopes and money jars.

READ MORE: Average Canadians pay 42.5 per cent of their income in taxes: report

At least one of the big banks, though, seems to have caught on.

On Thursday, the Bank of Nova Scotia launched a new savings account that allows users to channel their savings into up to five different buckets, which users can label based on their goals.

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The account, called Scotiabank Momentum Plus, also features a tiered interest rate that’s tied to the length of time money is left in a particular bucket. The longer the savings period, the higher the interest, up to 1.6 per cent.

WATCH: 5 money-making mobile apps for moms

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The account offers an annual interest rate of 0.7 per cent regular interest, plus between 0.75 per cent and 0.9 per cent in premium interest, depending on the savings period. Customers can choose to save as they would with a regular savings account, or pick a “premium” savings period of 90, 180, 270 or 360 days, according to details provided by Scotiabank.

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Customers can open a new account and set up different savings channels using the Scotiabank app. There is no monthly fee or minimum balance required.

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READ MORE: 5 money tips every college student should know

The account “makes terms deposit more accessible,” said Jeff Hindle of MaRS Discovery District, a Toronto-based non-profit that fosters tech innovation.

Though buckets for savings goals are nothing new in the world of money apps, the idea of a tiered interest rate tied to the length of the savings period seems quite new in the Canadian market, he added.

READ MORE: It’s time to ditch your chequing account fees. Here’s how

EQ Bank, the digital banking arm of Toronto-based Equitable Bank, does have a savings account where customers can set up different savings goals, according to Ratehub.ca, a website that rates mortgages, bank accounts and other financial products. And EQ Bank customers earn an everyday rate of 2.3 per cent with no strings attached, Kerri-Lynn McAllister, chief how to open a scotia savings account officer at Ratehub.ca, told Global News.

“Smaller providers and digital banks often have competitive rates because they can pass along the savings of not having a large branch network directly to their customers in the form of higher interest rates,” McAllister said via email. Still, “this Scotia rate is a competitive rate among the big five banks, and is a good direction,” she added.

WATCH:New app could help homeowners make money from unused parking

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In general, the Momentum Plus savings accounts seems “an early example of the new products and services inspired by FinTech innovation,” said Hindle.

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The flurry of money apps that have hit the Canadian market in recent years – think Mint, Borrowell and Wealthsimple – is putting pressure on traditional financial institutions to innovate.

Big banks including RBC and CIBC, as well as insurance behemoths like Manulife, are all rushing to attract top tech talent to work on anything from new digital financial products to big data and artificial intelligence.

Scotiabank recently set up a whole new office, dubbed Digital Factory, in downtown Toronto, where techies labour on new digital customer offerings.

“There’s a realization among incumbent financial firms that they have to change the way they think and operate,” said Hindle.

For consumers, it seems, it’s a win.

© 2017 Global News, a division of Corus Entertainment Inc.

Источник: https://globalnews.ca/news/3693430/saving-for-multiple-goals-finally-theres-a-big-bank-app-for-that/

What Is A Savings Account And How Does It Work?

When you need a place to keep your money that you’ll use to pay bills or cover expenses, a checking account is an obvious choice. What is the state capital of hawaii when you want to set money aside for future needs and goals, a savings account can be the better option.

Savings accounts allow you to deposit money for safekeeping while also earning interest on your balance. You can open a savings account at an FDIC-insured traditional bank or an NCUA-insured credit union, or with an FDIC-insured online bank. If you’re interested in opening a savings account, there are a few important things to know about how they work.

What Is a Savings Account?

A savings account is a deposit account that’s designed to hold money you don’t need or plan to spend right away. This is different from a checking account, which may allow you to write checks or make purchases and ATM withdrawals using a debit card.

Savings accounts help you stash money away for specific purposes and goals. For example, you may open a savings account to hold your emergency fund, or you could set up a down payment savings account ahead of buying a home.

While savings accounts can offer convenient access to your money, there are limits to how often you can tap into one. Until very recently, Federal Reserve Board Regulation D has limited you to six withdrawal transactions per month, including:

  • Overdraft transfers to a checking account
  • Electronic funds transfers (EFTs)
  • Automated clearing house (ACH) transfers
  • Transfers made by phone, fax, computer or mobile device
  • Wire transfers made by phone, fax, computer or mobile device
  • Check or debit card transactions

In April 2020, the Fed issued a final interim rule, giving financial institutions the option of lifting the six-per-month withdrawal restriction. However, if you go over the six transaction limit, your bank still can charge an excess withdrawal fee. The good news is that some transactions, such as transfers made via ATM or a branch, don’t count against this limit.

How Do Savings Accounts Work?

Savings accounts aren’t overly complicated. You open a savings account at a bank or credit union and deposit money into the account. The bank then pays you interest on your balance.

You can continue adding money to savings, usually through one or more of these methods, depending on the bank:

  • Cash or check deposits at the ATM
  • Cash or check deposits at a branch
  • ACH transfers from a linked bank account
  • Wire transfers from another bank account
  • Mobile check deposit
  • Direct deposit

The interest rate you earn, and the corresponding annual percentage yield, or APY, can vary from bank to bank and from account to account. The APY is the rate of interest earned on your savings when compounding interest is factored in.

So, assume you open a savings account with $1,000. You deposit $200 a month into your account and the bank pays an APY of 0.90%. After one year, your balance would be $3,419.84, $3,400 of which are your deposits and $19.84 of which is interest. The higher your APY, the more you deposit and the longer you save, the more your money can grow over time.

Benefits of Opening a Savings Account

There are several good reasons to keep money in a savings account, starting with being able to earn interest. As the previous calculation shows, savings accounts allow you to increase your money without your having to do anything extra. Although this isn’t free money—you still have to pay taxes on interest earnings—it is money you can earn passively just by saving regularly.

Savings accounts also offer more liquidity and convenience than other ways to save. A certificate of deposit or CD, for example, is another option for saving for short- and long-term goals. And, compared to some savings accounts, it’s possible to earn a better APY with a CD account.

But there’s a catch: CD accounts are time deposits, meaning that when you open one, you’re agreeing to leave your money in the CD for a set time period. While your money is in the CD, it earns interest, but you generally can’t access it without triggering a penalty before it matures. A savings account, on the other hand, would allow you up to six withdrawals per month without a penalty.

Savings accounts also are a safe way to set aside money for the future. While investing money is another way to help it grow, putting money into stocks or mutual funds can carry risk. Savings accounts, on the other hand, can offer a consistent rate of return without putting you at risk of losing money.

And, unlike investments, savings accounts can be FDIC or NCUA insured. This FDIC (or NCUA) insurance means that, even if your bank fails, your savings are protected up to certain limits ($250,000 per depositor, per account ownership category).

Types of Savings Accounts

There are different types of savings accounts you can open, depending on where you decide to bank and what your needs are. Here’s a brief look at how they compare.

Standard/Traditional Savings Accounts

Standard savings accounts are the most commonly offered savings option. You can find these at brick-and-mortar banks and credit unions.

With this type of account, you’re typically earning a lower APY. (The weekly national how to open a scotia savings account savings interest rate, as reported by the FDIC, has been 0.05% APY since late August 2020.) You also may be subject to a monthly maintenance fee or minimum balance fee. These accounts are designed to be a basic savings option.

High-Yield Savings Accounts

High-yield savings accounts are just what they sound like—savings accounts that offer an above-average APY. You’re more likely to find high-yield savings accounts at online banks, although traditional banks and credit unions also can offer them. In addition to offering higher yields, due to their lower overhead, online banks also may charge fewer fees for high-yield savings accounts.

Money Market Accounts

Money market accounts combine features of a savings account with features of a checking account. This means you can earn interest on your balance, and you also can write checks or make withdrawals and purchases using a debit card.

Money market accounts may offer better rates than standard savings accounts, although they are still subject to the six withdrawals per month rule. You might choose a money market account if you want to have even more convenient access to your savings.

Kids’ and Student Savings Accounts

Kids and students also can get in on the savings action with special children’s savings accounts designed just for them. These accounts usually have an age cutoff for saving; with student accounts, for example, you may not be able to open one if you’re 25 or older.

These accounts are designed to help children, teens and students learn how to get into a savings habit, can pay interest and may or may not charge fees. You’re more likely to find these accounts at traditional banks, versus online banks.

Specialized Savings Accounts

Some banks offer special savings accounts that are designed for just one purpose. So, for example, you might be able to open a savings account just for Christmas savings or to save money for a down payment on a home.

These accounts aren’t as common as other savings options and they can sometimes come with restrictions. For instance, with a Christmas savings account, you may only be able to make a withdrawal once a year in November ahead of the holiday shopping season. A down payment account may offer a matching savings bonus, but only if you get your mortgage from the bank you opened the account with.

How To Open a Savings Account

A savings account can be helpful for saving money toward various financial goals, and it pays to do your research when opening one. Otherwise, you could end up with a savings account mismatch.

When you’re ready to open a savings account, first think about which type of account may be most helpful. For example, either a standard or high-yield savings account could be the right choice for an emergency fund. But, if you’re saving money to pay cash for a car, you might want to choose a money market account instead that would let you write a check for the purchase.

Also, consider how much money you have to save. Some banks may require you to have a few hundred or even a few thousand dollars to open a savings account. An online bank, on the other hand, may allow you to start saving with as little as $1.

Next, consider the fees and the APY you can earn with a savings account. Ideally, you should choose an account that has the highest APY with the lowest fees. The more fees you pay, the less of your interest earnings you get to keep. Also, check to see if the APY you can earn applies to all balances. Some banks have interest tiers based on your balance, meaning you have to save more money to get the highest APY.

Finally, think about whether you’d prefer to save money with an online bank versus a brick-and-mortar bank or credit union, as well as the different options you have for dipping into your savings when necessary. Online and mobile banking can make your union savings bank com accessible, but you also may be interested in ATM access or being able to visit a branch. Looking at all the options can help you narrow down which savings account is right for you.

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Источник: https://www.forbes.com/advisor/banking/what-is-a-savings-account/
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Banking Information

Using Your Bank Card 

Before leaving your home country, ask your bank if you can use your bank card (debit card) to withdraw money in Canada. If a PLUS, Cirrus or Maestro symbol appears on the back of your card, you may withdraw money from bank machines (ATMs) with the same symbol(s). ATMs are convenient but keep in mind that you will be charged a transaction fee each time you withdraw money.

Choosing a Bank

When choosing a bank in London, we recommend that you: 

  • Ask your home bank if they have connections with any Canadian banks
  • Choose a bank that accepts money transfers from your bank at home
  • Find a bank that offers student rates

After you choose a bank, you can find the branch how to open a scotia savings account to you. To see which banks are close to Western and learn more about the different options, view the Banks Close to Oan one america news section below.

Opening a Bank Account

There are three basic types of bank accounts:

  • Chequing: Pays little or no interest; may have small charges for services; provides monthly statements; has debit privileges; is a useful and convenient method for paying rent, fees, bills, etc.
  • Savings: Provides better interest rate; has no chequing privileges; allows personal withdrawals only.  
  • Chequing/Savings: Combines the privileges of both a chequing and savings account.

Tips: You may want to open an account that provides you with cheques to pay for things like rent. If you do not have a chequing account, you can ask your landlord if he/she accepts email transfers (e-transfer) instead.

You need to bring two pieces of identification to open a bank account; bring your passport and another piece of photo identification, such as your WesternOne Student card.

Transferring Money to Canada

In order to transfer money from your home country, you must first open a bank account in Canada. You may want to bring bank drafts from home to allow you to open a bank account when how to open a scotia savings account arrive in London. A bank may accept bank drafts, cheques or letters of credit. However, money will not be transferred until it is cleared by your home bank. This process may take a few days or a few months.

Tips

1.  Determine what you need your bank account to do and ensure the bank you choose provides these services:

  • Save money?
  • Write cheques?
  • Pay bills?
  • Receive foreign cash transfers?
  • Take out money from bank machines (ATMs)?

2. Ask upper-year international students about their banking experiences. Which bank do they use? Are they happy with the service? How quickly does their bank transfer funds?

3. Ask the bank the following questions:

  • Is there a lower service charge for me as a Western student?
  • Can I use my bank card to get money if I am out of town?
  • Do you have Visa debit cards? (These can be used internationally where Visa is accepted.)
  • Will I receive a monthly bank statement? Does this cost extra?
  • How quickly will I receive my foreign cash transfers?
  • How do I access banking online?
  • Are there any extra costs/fees I should know about?

4. Visit the branch closest to you and ask to speak to someone who can suggest the right kind of account for you as an international student.

5. Make your needs clear.

6. Ask for the business card of your account manager or someone else who you can call if you have questions about your account.

Banks Close to Campus

Banks that allow for accounts to be fully opened and used while students are in quarantine are marked with an asterisk* below.

BMO (Bank of Montreal)

Bank of Montreal
101 Fanshawe Park Rd. East (located next to McDonald’s) 519-667-6273

To open an account please visit the BMO's website; this account will be put on hold until you come into the branch in-person with identification. 

Document & ID requirements to open how to open a scotia savings account account:
  • For identification you must bring your passport (mandatory) and one piece of Canadian documentation from the following list: SIN, student visa, study permit, major Canadian credit card
  • Required documents include your Canadian visa or study permit, Government photo ID such as a passport and driver's license, proof of school registration and expected graduation date
  • If how to open a scotia savings account already have a SIN and Canadian addess you can open an account online

During quarantine, you can only partially open your account; for the account to be active and for transactions to be approved, you must verify your ID in person first. This branch also does not provide pre-paid visas. 

Important links:

CIBC*

CIBC (Canadian Imperial Bank of Commerce)
228 Oxford St. East (Oxford St. & Richmond St.) 519-661-8110
97 Fanshawe Park Road East (Masonville Place parking lot) 519-661-8182

During quarantine you can open a student package remotely through email which includes a chequing account, savings account, and credit card.

To set this up you will email a copy of your passport and study permit to a representative who will then coordinate remote signing through email. Once this is done, you will have access to your new bank accounts right away. If you have to make online purchases immediately your representative can provde you with your card number in advance while your card is being mailed to your address.

Once your quarantine is over you will then need to go into the branch to set up your PIN for both your debit and credit cards. 

Important links:
CIBC business card for Michelle Fermanov-Grdanoski
CIBC business card for Linqing Ge
CIBC business card for Christopher Harwood
CIBC business card for Nicholas Pearce
CIBC business card for Vanessa Ruiz

RBC*

Royal Bank (RBC)
383 Richmond St. (located near Dundas Street) 519-661-1180

Through Royal bank you can do online banking as well as make e-transfers, but you cannot make online or web purchases without a credit card. Royal Bank also does not provide pre-paid visas, these can only be purchased from grocery stores and Shoppers Drugmart. During your quarantine you can set up a bank account over the phone (1 800 769 2511). This number will how to open a scotia savings account you to an appropriate branch, and help you set up a consultation appointment, but it is highly recommended that you book an appointment first and talk to a representative before setting up your bank account. Once your account is open, a debit card will come in the mail in 5-10 business days; you must request a credit card separately if you require one.

Document & ID requirements to open an account:
  • passport (mandatory)
  • student card with photo
  • immigration form - IMM 1442, IMM 5292
  • Canadian SIN
  • student visa
Important links:

Scotiabank

Scotiabank
109 Fanshawe Park Rd. East (at North Centre Rd.) 519-660-6902

Student accounts with Scotiabank have no montly fees and have unlimited transactions. You can open up a new account over the phone (1 888 882 3811), which will be put on hold until you visit the bank in person to verify your ID. Once you are at the bank you can pick up your debit card and apply for a credit card if you want one. You can try to do this before you arrive in Canada over the phone (416 288 3062), but your account will remain on hold until you have an opportunity to visit the bank to verify your ID before you can make transactions or transfers. Scotiabank does not provide pre-paid visas.

Document & ID requirements to open an account:
  • at least one piece of ID with a photo such as a passport
  • one piece of ID does not how to open a scotia savings account a photo such as study permit
  • proof of enrolment
Important links:

TD

TD Canada Trust

1137 Richmond St. (near the University gates on Richmond St.) 519-673-6021

You may set up your account online which will then be frozen until you come to a branch in person and verify ID. TD recommends that you visit a branch in person first as you will receive a newcomer discount when you set up your new account. TD does not provide pre-paid visas.

Document & ID requirements to open an account:
  • one piece of ID with a photo and signature is required such as passport, Canadian driver's license, or Canadian government ID
  • temporary permit (IMM 1442, IMM 1208, IMM 1102)
  • proof of enrolment
Important links:

HSBC (Hong Kong and Shanghai Banking Corporation)

HSBC (Hong Kong and Shanghai Banking Corporation)
285 King St. (corner of Wellington Rd. across from Citi Plaza) 519-439-1631


For a complete list of all the banks in London look under the "Banks" section of the Yellow Pages in the London Telephone Directory or on their website. 

Automatic Teller Machines (ATMs) on Campus

  • TD Canada Trust: UCC main floor (near Bento Sushi)
  • CIBC: UCC lower level (by the Tim Horton’s)
  • Bank of Montreal: UCC lower level
  • Royal Bank of Canada: UCC lower level (by the Tim Horton's)
  • Scotiabank: UCC lower level, Huron University College food court
  • Residences with ATMs: Perth Hall, Essex Hall, Delaware Hall, Sydenham Hall, Elgin Hall and Saugeen Maitland Hall.
  • Food Service Areas with ATMs: Althouse College, Spencer Engineering Building, Law School, Somerville House, Talbot College, Medical Sciences, Natural Sciences (Nucleus), UCC Centre Spot, Thompson Recreation Centre and the Social Sciences Building.
Источник: https://www.uwo.ca/international/iesc/new_students/before_you_arrive/money_matters/banking_information.html

Welcome to Arvest

Investments and Insurance Products: Not a Deposit

How to open a scotia savings account -

The best banks for expats in Canada (and how to open an account there)

All set for making the move to the Great White North? Before you go, find out about the best banks for expats in Canada, how you can open an account with these banks, and the factors you should consider when choosing a bank.

Mobile banking in Toronto, Canada

Moving to Canada, or any new country, for that matter, is easier said than done. But your finances don’t have to go through a rough patch because of that.

Keeping your money affairs in order, no matter what happens, is the key to a smooth transition in your international move. But how do you do that?

By being prepared. When you already know what to expect after shifting to Canada, you win half your battle of being an expat.

One of the first steps in this adjustment process is setting up your Canadian bank account. To help you out, we’ve come up with a list of the best banks for expats in Canada, plus the info you might need for opening an account there, and how you cansend money to your loved ones or your other account overseas. 

How do expats in Canada choose the right bank?

Some factors you should look out for when choosing a bank are:

Monthly fees

Many Canadian banks will charge you for opening and maintaining a checking account. This fee usually sits anywhere between $5CAD and $30 CAD per month, based on the number of transactions you want to make every month.

At the same time, the banks may offer to have the monthly fees waived if you have a minimum balance in your account, or meet some other criteria, like maintaining a certain number of recurring deposits or direct debits.

ATM charges

Generally, Canadian banks don’t charge you for using their own ATMs. But if you use another bank’s ATM, you may have to pay a certain fee for each such transaction.

So, to avoid this fee as much as possible, you can choose a bank that’s got a robust ATM network spread across Canada.

Interac e-transfer

It’s a payment system used by a collection of banks and merchants in Canada to transfer money online just by using the recipient’s email address. You don’t even need the bank details of the recipient.

To avail of this system, though, both you and the recipient must have a Canadian bank account that’s got this facility.

You might have to pay $1 CAD per transfer, but then again, you might not, if your bank offers free Interac e-transfers.

CDIC insurance

Similar to the Federal Deposit Insurance Corporation (FDIC), the Canada Deposit Insurance Corporation (CDIC) insures your deposits at a Canadian bank, up to $100,000 CAD.

The insurance covers your savings and checking account deposits, as well as deposits in foreign currencies, likeUS Dollars (USD).

Check whether the bank you’ve chosen for opening an account is CDIC insured.

What do expat customers need to apply for an account?

Naturally, each Canadian bank will have their own requirements, but the least you can do is cover the basics:

  • Your current mobile phone number and email address

  • A valid passport

  • Your residential address in Canada

  • Your employment and annual income details

  • Proof you’ve reached the age of majority in your province or territory. If you’re in Alberta, Quebec, Ontario, Saskatchewan, Manitoba, and Prince Edward Island, the age of majority is 18. You must be at least 19 years old if you’re in British Columbia, Nova Scotia, Yukon, Newfoundland and Labrador, Nunavut, the Northwest Territories, and New Brunswick.

  • Your Social Insurance Number (SIN). Some Canadian banks may also be ready to accept your Social Security Number (SSN), in case you’ve relocated to Canada from the US.

What are the best banks for expats in Canada?

There are plenty of brick-and-mortar as well asonline banks in Canada, but not all of them cater to expat customers. Here are some, though, that do.

Canadian Imperial Bank of Commerce (CIBC)

Interest rate: 0.05%

Monthly fee: $0 CAD to $25 CAD for savings accounts; $3.90 CAD to $29.95 CAD for checking accounts

CIBC offers a slew of savings accounts, including a high-interest one, and another in which you can save, withdraw, and deposit your US Dollars, if you’re from the US. You can also open a Registered Retirement Savings Plan (RRSP) account, or a Tax Free Savings Account (TFSA) at this bank.

Each savings account lets you add a savings goal online, and automate your savings by setting up recurring transfers from your checking account to your savings account.

What’s more, there isn’t any monthly fee, unless you transfer a part or all of your RRSP or TFSA funds to another bank, in which case, the fee would be $100 CAD.

Each transaction with a CIBC eAdvantage Savings Account costs $5 CAD, and with a CIBC US$ Personal Account, the transaction fee is $0.75 USD. The other savings accounts require a minimum investment of $25 CAD each.

The bank offers specialized accounts for seniors and youths, as well.

For example, seniors (aged 65 or more) can get free money orders, paper statements, and bank drafts, and 2 free transactions every month. Plus, when they use a safety deposit box, they’re eligible for a $5 CAD discount on the annual rental fee.

As for checking accounts, CIBC offers 3 of these, with some offering free Interac e-transfer, unlimited cash withdrawals at CIBC ATMs globally, and 12 to unlimited transactions.

If you want to avoid the monthly fee, you need to keep a daily minimum balance between $3,000 CAD and $6,000 CAD, or have $100,000 CAD in investments and savings.

With a CIBC Smart Plus checking account, you can also get a CIBC premium credit card and avail of annual fee rebates. Seniors are entitled to a monthly fee discount of $4.95 CAD on their specialized checking accounts.

Allowing you to pay on the go using Apple Pay, Android Pay, and Samsung Pay, the checking accounts at the bank also let you opt for overdraft protection.

To set up an account at CIBC, you need to be a resident in Canada, and you must also have reached the age of majority (18 or 19) in your province or territory.

Scotiabank

Interest rate: 0.01% to 0.50% (for a limited period) for savings accounts

Monthly fee: $0 CAD for savings accounts; $3.95 CAD to $30.95 CAD for checking accounts

Based in Toronto, the Bank of Nova Scotia, or Scotiabank, is the third largest bank in Canada.

A wonderful benefit of banking with Scotiabank is that their savings accounts are geared towards expats with different needs.

Like, if you want to grow your savings faster than usual, you can set up a Savings Accelerator account, where your interest rate will increase with your balance. For day-to-day access to your money, a Money Master Savings account would be just the right thing.

Scotiabank also offers daily interest savings accounts in 2 foreign currencies - theEuro (EUR) and the US Dollar (USD).

You can waive your monthly fees on these 2 accounts with a minimum balance of €200 EUR or $200 USD (depending on the foreign currency account you’ve set up). Expats aged 60 or more also don’t need to pay any monthly fees on these 2 savings accounts.

For the rest of the savings accounts, you don’t have to pay monthly fees, either. In case of Interac e-transfers with savings accounts, though, the bank charges a $2 CAD fee per transfer.

On the other hand, nearly all the checking accounts at Scotiabank offer free or unlimited Interac e-transfer transactions. You can avoid the monthly fees for checking accounts by maintaining a minimum daily balance between $3,000 CAD and $5,000 CAD for the whole month.

The bank also lets you opt for a couple of checking account packages, where you need to have a Momentum Savings account for earning a welcome bonus of $300 CAD.

Thankfully, Scotiabank isn’t that strict about who can or can’t open an account. So long as you’re a Canadian resident, or you’ve come to the country for work or study, and you’re at least 16 years of age, you can set up an account with this bank online.

In addition, Scotiabank lets you check your credit score for free - and not many Canadian banks can boast of this feature.

HSBC Bank Canada

Interest rate: 0.05%

Monthly fee: $0 CAD to $34.95 CAD for savings and checking accounts; $1.50 CAD at third-party ATMs in Canada

A huge advantage of opening a bank account at HSBC Canada is that if you’re already an HSBC customer in your country of origin, you can transfer your financial history to the new HSBC account in Canada.

Anyway, this bank offers a wide variety of savings accounts for expats in Canada. With the High Rate Savings account, you don’t need to pay any monthly fees or maintain a minimum balance.

And you’ll become eligible for unlimited debits and withdrawals, as well as free mobile check deposits and Interac e-transfers, once you set up a Youth Savings Account.

The bank offers Foreign Currency Savings accounts, too, like accounts forChinese Yuan Renminbi (CNY), theBritish Pound (GBP),Hong Kong Dollar (HKD), US Dollar (USD), and Euro (EUR). None of these foreign currency accounts require any minimum balance or monthly fees, but you’ll still get competitive interest rates with all of them.

Coming to the checking accounts, both HSBC Premier and HSBC Advance provide unique benefits and services, but only if you meet their criteria.

For example, opening an HSBC Advance account will make you eligible for free Interac e-transfers from the account, unlimited daily checking account transactions, and 5 rebates per month on fees when using third-party ATMs.

However, to set up this account, you need to have combined personal investments and deposits of $5,000 CAD in HSBC Bank Canada and their subsidiaries. Either that, or you must hold a residential mortgage of at least $150,000 CAD with the bank.

Not all checking accounts have such criteria, though. With a Student checking account, for instance, you can make unlimited transactions, free mobile check deposits and Interac e-transfers, and pay no monthly fees.

How can expat customers set up an account in Canada?

Opening a bank account in Canada online doesn’t usually take more than 10 minutes or so. You just need to:

  1. Confirm you’ve reached the age of majority in your province and that you’re a resident in Canada

  2. Agree to having your credit check done by the bank

  3. Enter your name and date of birth

  4. Add your SIN (optional)

  5. Enter your current residential address in Canada, and indicate how long you’ve stayed there

  6. Provide your Canadian phone number and email address

  7. Enter your employment status and annual income details

  8. Get your new bank account, once the bank verifies your information and you agree to the terms and conditions.

How can expats in Canada send money back home?

Of course, most of the best banks for expats in Canada let you makewire transfers to one or more countries. But are you ready to pay the numerous fees that come with a wire transfer at a bank?

For example, Scotiabank charges $15 CAD for every wire transfer you receive, in addition to the extra margins on theirexchange rates. Compare that to the cost-effective rates charged by an online internationalmoney transfer provider like Xe - and you’ve finally found a cheap and efficient way of transferring money overseas, 24/7.

Here’s how you cansend money from Canada to more than 130 countries:

  1. Sign up orsign in to your Xe account.

  2. Enter the amount of money you wish to transfer.

  3. Enter the currency you want to exchange.

  4. Add the recipient’s name, address, and bank details.

  5. Choose whether you want to pay with your card, direct debit, or bank transfer.

  6. Enter your payment details.

  7. Verify all the info you’ve entered, and confirm the payment.

Get a quote

To know more,download the Xe mobile app, orvisit our online Help Centre.

CanadaCanadian DollarCADLife AbroadLiving Abroad TipsBanksBankingExpat Bank AccountsBanking for ExpatsBanks in CanadaExpatsExpat Lifestyles

Источник: https://www.xe.com/blog/living-abroad-tips/the-best-banks-for-expats-in-canada-and-how-to-open-an-account-there/
by Consolidated Credit Canada (6 minutes read )

Newcomers to Canada have a lot to adapt to. One of the things newcomers must learn and manage is their finances. The Canadian financial system offers a ton of benefits, but it is also complex. Below is general information for newcomers adjusting to life in Canada.

Who is a newcomer to Canada?

A newcomer is anyone who left another country to settle in Canada. In other words, someone who immigrated to Canada. This could be a temporary resident, international student or someone who has Canadian residency. With this in mind, there are ample resources available for newcomers to Canada.

Getting started with Canada’s banking system

Obtaining a bank account is an important step in the financial process for newcomers. A bank account allows you to:

  • Set up direct deposit with your employer
  • Utilize online banking services, such as ATMs and a debit/credit card
  • Lastly, establish chequing, savings and other accounts

To open a Canadian bank account, you must choose an institution. In Canada, there are three types of financial institutions: traditional banks, trust companies and credit unions. All three types of institutions offer banking services but differ slightly in how they do business.

The big five banks are the largest and most competitive in the market. They include:

  • Toronto-Dominion Bank (TD)
  • Royal Bank of Canada (RBC)
  • Bank of Montreal (BMO)
  • Canadian Imperial Bank of Commerce (CIBC)
  • Bank of Nova Scotia (Scotiabank)

These are often considered the best bank for newcomers to Canada. Generally speaking, credit unions and trust companies are smaller and less competitive. However, they can still meet all your banking needs and are often more intimate.

Upon your arrival to Canada, research banks to determine which one is best united to your needs.

Investments

There are a number of special investment accounts available to Canadians. For example, there are two kinds of investment accounts: registered and non-registered. Let’s explore further below.

Registered

Non-registered

  • Guaranteed Investment Certificate (GIC)
  • Non-registered savings accounts

How newcomers to Canada can obtain a good credit score

Down the road, you may want to access other financial services. For example, credit cards, mortgages, lines of credit and so on. These products can help you acquire wealth and achieve your life goals.

However, to be eligible for these products, lenders will evaluate your credit score. For this reason, it’s important to start building credit as soon as you arrive in Canada. Unfortunately, newcomers can be at a disadvantage since they are starting to build credit later in life than other Canadians. Below are some tips for newcomers to Canada.

Steady employment

Undoubtedly, having a full time job with little to no gaps in employment helps credit scores. Stable, reliable income is a big consideration for lending too. You may need a work permit or a permanent resident card to get your first job in Canada.

Always pay bills on time and in full

Repayment history has the largest impact on your credit score. If you always pay your bills on time and in full, you will establish strong credit over time. However, if you anticipate you can’t pay a bill on time, communicate with the institution. This can preserve your credit score as opposed to ignoring it.

Use a secured credit card

A good way to boost your credit score is through a secured credit card. They are essentially the same as a credit card, but require a cash deposit upfront. That deposit becomes your credit limit. For instance, if you ever fail to pay your monthly bill, the cash deposit will repay your debt.

Apply for small loans

As mentioned, repayment history has a big impact on your credit score. For this reason, you can apply for a small loan and use your savings to repay it. This will build up your credit history and show you’re responsible with debt.

Follow agreements and conditions

If you obtain a loan or other financial product, be sure to follow the agreement and conditions. This is part of being responsible with debt.
However, if you expect you’ll miss a payment or can’t meet the obligation, communicate with the lender.

Don’t overextend yourself

It can be tempting to take on more and more debt. However, this is how the cycle downwards into debt can start. Try your best to build and maintain credit without taking on more debt than you can realistically manage.

Your credit report

In Canada, there is something called a credit report. Every individual has one. To clarify, it communicates your credit score and financial activity. This includes your personal information, repayment history, open and closed accounts, accounts in collections, and so on.

Benefits and tax credits for newcomers to Canada

Additionally, Canada offers special benefits and credits to certain individuals and groups. Below is a list of the three main benefits and credits newcomers may be eligible for.

  • GST/HST credit. A sales tax credit offered to individuals and families with low to modest income. Generally, the credit offsets GST or HST sales tax they pay. When you file your taxes, you are automatically considered for this credit. You do not need to apply.
  • Canada child benefit (CCB). This credit is only available to families and individuals with children under the age of 18. It is a tax-free payment from the CRA. CCB may include the child disability benefit and any similar provincial/territorial programs.
  • Provincial/territorial programs. Each province and territory offers unique benefits and credits. Thus, you may be eligible, depending on where you live in Canada.

Do you have to file a tax return?

Yes. Every individual in Canada must file a tax return annually. In general, the tax year is always from January to December. Your tax filing and return are due in April. Fortunately, there are more benefits and credits available through the annual taxation system. For example, you may be eligible for a tax return, money back from the government, which is why it’s important to file.

Be aware of fraud

With Canada’s comprehensive financial system, there is a disadvantage, the potential for fraud. Unfortunately, people may exploit unsuspecting individuals with the hope of financial gain. Therefore, be wary of fraudulent activity. Do not give out your personal information, unless it’s to a source you trust. Even so, be cautious of sharing information over the internet. In terms of scams, remember that if it’s too good to be true, it probably is.

How to report fraud

If you’ve fallen victim to fraud, you should report it and rectify the situation. Firstly, report it to your bank. They may be able to waive fraudulent charges so you’re not liable. In addition, they will issue you new cards to ensure your financial information stays safe. Secondly, report it to the credit bureaus, Equifax and TransUnion. Fraudulent activity may reflect on your credit report. If this is the case, request to add a personal statement to your credit report to explain the situation to future lenders.

Resources for newcomers to Canada

Check out various resources below for informational purposes only:

Find more information in Consolidated Credit Canada’s “Credit in a New Country” booklet.

credit in a new country Ebook

Credit in a New Country

Establishing good credit is often frustrating for those who are new to this country and don’t understand how the system works. Establishing credit is a critical component for financial survival. Use this booklet to guide you through the basics of developing credit in this country.

Open Booklet Download PDF

Newcomers and finances

Upon arrival to Canada, finances can be overwhelming to newcomers. However, the sooner you start managing your finances, the faster you’ll learn and adjust. If you need help navigating the Canadian financial system, Consolidated Credit can help. The organization offers tons of resources to help newcomers to Canada.

Источник: https://www.consolidatedcreditcanada.ca/financial-news/newcomers-to-canada/
Not Insured by Any Federal Government Agency

Welcome to Arvest

Investments and Insurance Products: Not a Deposit Not FDIC Insured

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Coming Soon

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Keep an eye out for a new RBC Online Banking sign-in page—redesigned to give you a better banking experience.

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Important Updates to the RBC Online Banking Sign-in Page

Keep an eye out for a new RBC Online Banking sign-in page—redesigned to give you a better banking experience.

Find Out More

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Where We Operate

RBC is one of Canada’s largest banks and one of the largest banks in the world, based on market capitalization.

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2021 RBC Annual Report

Learn how RBC delivered value and lived our Purpose of helping clients thrive and communities prosper in 2021.

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Careers at RBC

RBC offers a variety of roles suited to your goals, background and talents.

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In the Community

RBC is committed to helping clients thrive and communities prosper, supporting strategic initiatives that make a measurable impact on society, the environment and the economy.

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With more than 100 years of dedicated service to the Caribbean, RBC has a presence in 10 countries across the Caribbean, serving nearly one million clients.

As one of the Caribbean’s leading diversified financial services companies, RBC provides personal and commercial banking, wealth management, corporate and investment banking, insurance and trust and asset management services to a range of clients, including individuals, small businesses, general commercial entities, regional and multi-national corporations and governments.

Please use the country locator to learn more about services specific to our Caribbean countries.

Источник: https://www.rbc.com/about-rbc.html
how to open a scotia savings account

How to open a scotia savings account -

The best banks for expats in Canada (and how to open an account there)

All set for making the move to the Great White North? Before you go, find out about the best banks for expats in Canada, how you can open an account with these banks, and the factors you should consider when choosing a bank.

Mobile banking in Toronto, Canada

Moving to Canada, or any new country, for that matter, is easier said than done. But your finances don’t have to go through a rough patch because of that.

Keeping your money affairs in order, no matter what happens, is the key to a smooth transition in your international move. But how do you do that?

By being prepared. When you already know what to expect after shifting to Canada, you win half your battle of being an expat.

One of the first steps in this adjustment process is setting up your Canadian bank account. To help you out, we’ve come up with a list of the best banks for expats in Canada, plus the info you might need for opening an account there, and how you cansend money to your loved ones or your other account overseas. 

How do expats in Canada choose the right bank?

Some factors you should look out for when choosing a bank are:

Monthly fees

Many Canadian banks will charge you for opening and maintaining a checking account. This fee usually sits anywhere between $5CAD and $30 CAD per month, based on the number of transactions you want to make every month.

At the same time, the banks may offer to have the monthly fees waived if you have a minimum balance in your account, or meet some other criteria, like maintaining a certain number of recurring deposits or direct debits.

ATM charges

Generally, Canadian banks don’t charge you for using their own ATMs. But if you use another bank’s ATM, you may have to pay a certain fee for each such transaction.

So, to avoid this fee as much as possible, you can choose a bank that’s got a robust ATM network spread across Canada.

Interac e-transfer

It’s a payment system used by a collection of banks and merchants in Canada to transfer money online just by using the recipient’s email address. You don’t even need the bank details of the recipient.

To avail of this system, though, both you and the recipient must have a Canadian bank account that’s got this facility.

You might have to pay $1 CAD per transfer, but then again, you might not, if your bank offers free Interac e-transfers.

CDIC insurance

Similar to the Federal Deposit Insurance Corporation (FDIC), the Canada Deposit Insurance Corporation (CDIC) insures your deposits at a Canadian bank, up to $100,000 CAD.

The insurance covers your savings and checking account deposits, as well as deposits in foreign currencies, likeUS Dollars (USD).

Check whether the bank you’ve chosen for opening an account is CDIC insured.

What do expat customers need to apply for an account?

Naturally, each Canadian bank will have their own requirements, but the least you can do is cover the basics:

  • Your current mobile phone number and email address

  • A valid passport

  • Your residential address in Canada

  • Your employment and annual income details

  • Proof you’ve reached the age of majority in your province or territory. If you’re in Alberta, Quebec, Ontario, Saskatchewan, Manitoba, and Prince Edward Island, the age of majority is 18. You must be at least 19 years old if you’re in British Columbia, Nova Scotia, Yukon, Newfoundland and Labrador, Nunavut, the Northwest Territories, and New Brunswick.

  • Your Social Insurance Number (SIN). Some Canadian banks may also be ready to accept your Social Security Number (SSN), in case you’ve relocated to Canada from the US.

What are the best banks for expats in Canada?

There are plenty of brick-and-mortar as well asonline banks in Canada, but not all of them cater to expat customers. Here are some, though, that do.

Canadian Imperial Bank of Commerce (CIBC)

Interest rate: 0.05%

Monthly fee: $0 CAD to $25 CAD for savings accounts; $3.90 CAD to $29.95 CAD for checking accounts

CIBC offers a slew of savings accounts, including a high-interest one, and another in which you can save, withdraw, and deposit your US Dollars, if you’re from the US. You can also open a Registered Retirement Savings Plan (RRSP) account, or a Tax Free Savings Account (TFSA) at this bank.

Each savings account lets you add a savings goal online, and automate your savings by setting up recurring transfers from your checking account to your savings account.

What’s more, there isn’t any monthly fee, unless you transfer a part or all of your RRSP or TFSA funds to another bank, in which case, the fee would be $100 CAD.

Each transaction with a CIBC eAdvantage Savings Account costs $5 CAD, and with a CIBC US$ Personal Account, the transaction fee is $0.75 USD. The other savings accounts require a minimum investment of $25 CAD each.

The bank offers specialized accounts for seniors and youths, as well.

For example, seniors (aged 65 or more) can get free money orders, paper statements, and bank drafts, and 2 free transactions every month. Plus, when they use a safety deposit box, they’re eligible for a $5 CAD discount on the annual rental fee.

As for checking accounts, CIBC offers 3 of these, with some offering free Interac e-transfer, unlimited cash withdrawals at CIBC ATMs globally, and 12 to unlimited transactions.

If you want to avoid the monthly fee, you need to keep a daily minimum balance between $3,000 CAD and $6,000 CAD, or have $100,000 CAD in investments and savings.

With a CIBC Smart Plus checking account, you can also get a CIBC premium credit card and avail of annual fee rebates. Seniors are entitled to a monthly fee discount of $4.95 CAD on their specialized checking accounts.

Allowing you to pay on the go using Apple Pay, Android Pay, and Samsung Pay, the checking accounts at the bank also let you opt for overdraft protection.

To set up an account at CIBC, you need to be a resident in Canada, and you must also have reached the age of majority (18 or 19) in your province or territory.

Scotiabank

Interest rate: 0.01% to 0.50% (for a limited period) for savings accounts

Monthly fee: $0 CAD for savings accounts; $3.95 CAD to $30.95 CAD for checking accounts

Based in Toronto, the Bank of Nova Scotia, or Scotiabank, is the third largest bank in Canada.

A wonderful benefit of banking with Scotiabank is that their savings accounts are geared towards expats with different needs.

Like, if you want to grow your savings faster than usual, you can set up a Savings Accelerator account, where your interest rate will increase with your balance. For day-to-day access to your money, a Money Master Savings account would be just the right thing.

Scotiabank also offers daily interest savings accounts in 2 foreign currencies - theEuro (EUR) and the US Dollar (USD).

You can waive your monthly fees on these 2 accounts with a minimum balance of €200 EUR or $200 USD (depending on the foreign currency account you’ve set up). Expats aged 60 or more also don’t need to pay any monthly fees on these 2 savings accounts.

For the rest of the savings accounts, you don’t have to pay monthly fees, either. In case of Interac e-transfers with savings accounts, though, the bank charges a $2 CAD fee per transfer.

On the other hand, nearly all the checking accounts at Scotiabank offer free or unlimited Interac e-transfer transactions. You can avoid the monthly fees for checking accounts by maintaining a minimum daily balance between $3,000 CAD and $5,000 CAD for the whole month.

The bank also lets you opt for a couple of checking account packages, where you need to have a Momentum Savings account for earning a welcome bonus of $300 CAD.

Thankfully, Scotiabank isn’t that strict about who can or can’t open an account. So long as you’re a Canadian resident, or you’ve come to the country for work or study, and you’re at least 16 years of age, you can set up an account with this bank online.

In addition, Scotiabank lets you check your credit score for free - and not many Canadian banks can boast of this feature.

HSBC Bank Canada

Interest rate: 0.05%

Monthly fee: $0 CAD to $34.95 CAD for savings and checking accounts; $1.50 CAD at third-party ATMs in Canada

A huge advantage of opening a bank account at HSBC Canada is that if you’re already an HSBC customer in your country of origin, you can transfer your financial history to the new HSBC account in Canada.

Anyway, this bank offers a wide variety of savings accounts for expats in Canada. With the High Rate Savings account, you don’t need to pay any monthly fees or maintain a minimum balance.

And you’ll become eligible for unlimited debits and withdrawals, as well as free mobile check deposits and Interac e-transfers, once you set up a Youth Savings Account.

The bank offers Foreign Currency Savings accounts, too, like accounts forChinese Yuan Renminbi (CNY), theBritish Pound (GBP),Hong Kong Dollar (HKD), US Dollar (USD), and Euro (EUR). None of these foreign currency accounts require any minimum balance or monthly fees, but you’ll still get competitive interest rates with all of them.

Coming to the checking accounts, both HSBC Premier and HSBC Advance provide unique benefits and services, but only if you meet their criteria.

For example, opening an HSBC Advance account will make you eligible for free Interac e-transfers from the account, unlimited daily checking account transactions, and 5 rebates per month on fees when using third-party ATMs.

However, to set up this account, you need to have combined personal investments and deposits of $5,000 CAD in HSBC Bank Canada and their subsidiaries. Either that, or you must hold a residential mortgage of at least $150,000 CAD with the bank.

Not all checking accounts have such criteria, though. With a Student checking account, for instance, you can make unlimited transactions, free mobile check deposits and Interac e-transfers, and pay no monthly fees.

How can expat customers set up an account in Canada?

Opening a bank account in Canada online doesn’t usually take more than 10 minutes or so. You just need to:

  1. Confirm you’ve reached the age of majority in your province and that you’re a resident in Canada

  2. Agree to having your credit check done by the bank

  3. Enter your name and date of birth

  4. Add your SIN (optional)

  5. Enter your current residential address in Canada, and indicate how long you’ve stayed there

  6. Provide your Canadian phone number and email address

  7. Enter your employment status and annual income details

  8. Get your new bank account, once the bank verifies your information and you agree to the terms and conditions.

How can expats in Canada send money back home?

Of course, most of the best banks for expats in Canada let you makewire transfers to one or more countries. But are you ready to pay the numerous fees that come with a wire transfer at a bank?

For example, Scotiabank charges $15 CAD for every wire transfer you receive, in addition to the extra margins on theirexchange rates. Compare that to the cost-effective rates charged by an online internationalmoney transfer provider like Xe - and you’ve finally found a cheap and efficient way of transferring money overseas, 24/7.

Here’s how you cansend money from Canada to more than 130 countries:

  1. Sign up orsign in to your Xe account.

  2. Enter the amount of money you wish to transfer.

  3. Enter the currency you want to exchange.

  4. Add the recipient’s name, address, and bank details.

  5. Choose whether you want to pay with your card, direct debit, or bank transfer.

  6. Enter your payment details.

  7. Verify all the info you’ve entered, and confirm the payment.

Get a quote

To know more,download the Xe mobile app, orvisit our online Help Centre.

CanadaCanadian DollarCADLife AbroadLiving Abroad TipsBanksBankingExpat Bank AccountsBanking for ExpatsBanks in CanadaExpatsExpat Lifestyles

Источник: https://www.xe.com/blog/living-abroad-tips/the-best-banks-for-expats-in-canada-and-how-to-open-an-account-there/
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Investment products and services provided by Arvest Investments, Inc., doing business as Arvest Wealth Management, member FINRA/SIPC, an SEC registered investment adviser and a subsidiary of Arvest Bank. Securities offered and cleared through Pershing LLC, a BNY Mellon company, member NYSE/SIPC. Insurance products made available through Arvest Insurance, Inc., which is registered as an insurance agency. Insurance products are marketed through Arvest Insurance, Inc., but are underwritten by unaffiliated insurance companies.
The Investment Management Group (IMG) is comprised of Arvest Wealth Management registered investment adviser representatives who provide portfolio management services with respect to certain of Arvest Wealth Management's investment advisory wrap fee programs.
Trust services provided by Arvest Bank.

Источник: https://www.arvest.com/
by Consolidated Credit Canada (6 minutes read )

Newcomers to Canada have a lot to adapt to. One of the things newcomers must learn and manage is their finances. The Canadian financial system offers a ton of benefits, but it is also complex. Below is general information for newcomers adjusting to life in Canada.

Who is a newcomer to Canada?

A newcomer is anyone who left another country to settle in Canada. In other words, someone who immigrated to Canada. This could be a temporary resident, international student or someone who has Canadian residency. With this in mind, there are ample resources available for newcomers to Canada.

Getting started with Canada’s banking system

Obtaining a bank account is an important step in the financial process for newcomers. A bank account allows you to:

  • Set up direct deposit with your employer
  • Utilize online banking services, such as ATMs and a debit/credit card
  • Lastly, establish chequing, savings and other accounts

To open a Canadian bank account, you must choose an institution. In Canada, there are three types of financial institutions: traditional banks, trust companies and credit unions. All three types of institutions offer banking services but differ slightly in how they do business.

The big five banks are the largest and most competitive in the market. They include:

  • Toronto-Dominion Bank (TD)
  • Royal Bank of Canada (RBC)
  • Bank of Montreal (BMO)
  • Canadian Imperial Bank of Commerce (CIBC)
  • Bank of Nova Scotia (Scotiabank)

These are often considered the best bank for newcomers to Canada. Generally speaking, credit unions and trust companies are smaller and less competitive. However, they can still meet all your banking needs and are often more intimate.

Upon your arrival to Canada, research banks to determine which one is best united to your needs.

Investments

There are a number of special investment accounts available to Canadians. For example, there are two kinds of investment accounts: registered and non-registered. Let’s explore further below.

Registered

Non-registered

  • Guaranteed Investment Certificate (GIC)
  • Non-registered savings accounts

How newcomers to Canada can obtain a good credit score

Down the road, you may want to access other financial services. For example, credit cards, mortgages, lines of credit and so on. These products can help you acquire wealth and achieve your life goals.

However, to be eligible for these products, lenders will evaluate your credit score. For this reason, it’s important to start building credit as soon as you arrive in Canada. Unfortunately, newcomers can be at a disadvantage since they are starting to build credit later in life than other Canadians. Below are some tips for newcomers to Canada.

Steady employment

Undoubtedly, having a full time job with little to no gaps in employment helps credit scores. Stable, reliable income is a big consideration for lending too. You may need a work permit or a permanent resident card to get your first job in Canada.

Always pay bills on time and in full

Repayment history has the largest impact on your credit score. If you always pay your bills on time and in full, you will establish strong credit over time. However, if you anticipate you can’t pay a bill on time, communicate with the institution. This can preserve your credit score as opposed to ignoring it.

Use a secured credit card

A good way to boost your credit score is through a secured credit card. They are essentially the same as a credit card, but require a cash deposit upfront. That deposit becomes your credit limit. For instance, if you ever fail to pay your monthly bill, the cash deposit will repay your debt.

Apply for small loans

As mentioned, repayment history has a big impact on your credit score. For this reason, you can apply for a small loan and use your savings to repay it. This will build up your credit history and show you’re responsible with debt.

Follow agreements and conditions

If you obtain a loan or other financial product, be sure to follow the agreement and conditions. This is part of being responsible with debt.
However, if you expect you’ll miss a payment or can’t meet the obligation, communicate with the lender.

Don’t overextend yourself

It can be tempting to take on more and more debt. However, this is how the cycle downwards into debt can start. Try your best to build and maintain credit without taking on more debt than you can realistically manage.

Your credit report

In Canada, there is something called a credit report. Every individual has one. To clarify, it communicates your credit score and financial activity. This includes your personal information, repayment history, open and closed accounts, accounts in collections, and so on.

Benefits and tax credits for newcomers to Canada

Additionally, Canada offers special benefits and credits to certain individuals and groups. Below is a list of the three main benefits and credits newcomers may be eligible for.

  • GST/HST credit. A sales tax credit offered to individuals and families with low to modest income. Generally, the credit offsets GST or HST sales tax they pay. When you file your taxes, you are automatically considered for this credit. You do not need to apply.
  • Canada child benefit (CCB). This credit is only available to families and individuals with children under the age of 18. It is a tax-free payment from the CRA. CCB may include the child disability benefit and any similar provincial/territorial programs.
  • Provincial/territorial programs. Each province and territory offers unique benefits and credits. Thus, you may be eligible, depending on where you live in Canada.

Do you have to file a tax return?

Yes. Every individual in Canada must file a tax return annually. In general, the tax year is always from January to December. Your tax filing and return are due in April. Fortunately, there are more benefits and credits available through the annual taxation system. For example, you may be eligible for a tax return, money back from the government, which is why it’s important to file.

Be aware of fraud

With Canada’s comprehensive financial system, there is a disadvantage, the potential for fraud. Unfortunately, people may exploit unsuspecting individuals with the hope of financial gain. Therefore, be wary of fraudulent activity. Do not give out your personal information, unless it’s to a source you trust. Even so, be cautious of sharing information over the internet. In terms of scams, remember that if it’s too good to be true, it probably is.

How to report fraud

If you’ve fallen victim to fraud, you should report it and rectify the situation. Firstly, report it to your bank. They may be able to waive fraudulent charges so you’re not liable. In addition, they will issue you new cards to ensure your financial information stays safe. Secondly, report it to the credit bureaus, Equifax and TransUnion. Fraudulent activity may reflect on your credit report. If this is the case, request to add a personal statement to your credit report to explain the situation to future lenders.

Resources for newcomers to Canada

Check out various resources below for informational purposes only:

Find more information in Consolidated Credit Canada’s “Credit in a New Country” booklet.

credit in a new country Ebook

Credit in a New Country

Establishing good credit is often frustrating for those who are new to this country and don’t understand how the system works. Establishing credit is a critical component for financial survival. Use this booklet to guide you through the basics of developing credit in this country.

Open Booklet Download PDF

Newcomers and finances

Upon arrival to Canada, finances can be overwhelming to newcomers. However, the sooner you start managing your finances, the faster you’ll learn and adjust. If you need help navigating the Canadian financial system, Consolidated Credit can help. The organization offers tons of resources to help newcomers to Canada.

Источник: https://www.consolidatedcreditcanada.ca/financial-news/newcomers-to-canada/

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Keep an eye out for a new RBC Online Banking sign-in page—redesigned to give you a better banking experience.

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Important Updates to the RBC Online Banking Sign-in Page

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Learn how RBC delivered value and lived our Purpose of helping clients thrive and communities prosper in 2021.

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RBC offers a variety of roles suited to your goals, background and talents.

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RBC is committed to helping clients thrive and communities prosper, supporting strategic initiatives that make a measurable impact on society, the environment and the economy.

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With more than 100 years of dedicated service to the Caribbean, RBC has a presence in 10 countries across the Caribbean, serving nearly one million clients.

As one of the Caribbean’s leading diversified financial services companies, RBC provides personal and commercial banking, wealth management, corporate and investment banking, insurance and trust and asset management services to a range of clients, including individuals, small businesses, general commercial entities, regional and multi-national corporations and governments.

Please use the country locator to learn more about services specific to our Caribbean countries.

Источник: https://www.rbc.com/about-rbc.html

Banking Information

Using Your Bank Card 

Before leaving your home country, ask your bank if you can use your bank card (debit card) to withdraw money in Canada. If a PLUS, Cirrus or Maestro symbol appears on the back of your card, you may withdraw money from bank machines (ATMs) with the same symbol(s). ATMs are convenient but keep in mind that you will be charged a transaction fee each time you withdraw money.

Choosing a Bank

When choosing a bank in London, we recommend that you: 

  • Ask your home bank if they have connections with any Canadian banks
  • Choose a bank that accepts money transfers from your bank at home
  • Find a bank that offers student rates

After you choose a bank, you can find the branch nearest to you. To see which banks are close to Western and learn more about the different options, view the Banks Close to Campus section below.

Opening a Bank Account

There are three basic types of bank accounts:

  • Chequing: Pays little or no interest; may have small charges for services; provides monthly statements; has debit privileges; is a useful and convenient method for paying rent, fees, bills, etc.
  • Savings: Provides better interest rate; has no chequing privileges; allows personal withdrawals only.  
  • Chequing/Savings: Combines the privileges of both a chequing and savings account.

Tips: You may want to open an account that provides you with cheques to pay for things like rent. If you do not have a chequing account, you can ask your landlord if he/she accepts email transfers (e-transfer) instead.

You need to bring two pieces of identification to open a bank account; bring your passport and another piece of photo identification, such as your WesternOne Student card.

Transferring Money to Canada

In order to transfer money from your home country, you must first open a bank account in Canada. You may want to bring bank drafts from home to allow you to open a bank account when you arrive in London. A bank may accept bank drafts, cheques or letters of credit. However, money will not be transferred until it is cleared by your home bank. This process may take a few days or a few months.

Tips

1.  Determine what you need your bank account to do and ensure the bank you choose provides these services:

  • Save money?
  • Write cheques?
  • Pay bills?
  • Receive foreign cash transfers?
  • Take out money from bank machines (ATMs)?

2. Ask upper-year international students about their banking experiences. Which bank do they use? Are they happy with the service? How quickly does their bank transfer funds?

3. Ask the bank the following questions:

  • Is there a lower service charge for me as a Western student?
  • Can I use my bank card to get money if I am out of town?
  • Do you have Visa debit cards? (These can be used internationally where Visa is accepted.)
  • Will I receive a monthly bank statement? Does this cost extra?
  • How quickly will I receive my foreign cash transfers?
  • How do I access banking online?
  • Are there any extra costs/fees I should know about?

4. Visit the branch closest to you and ask to speak to someone who can suggest the right kind of account for you as an international student.

5. Make your needs clear.

6. Ask for the business card of your account manager or someone else who you can call if you have questions about your account.

Banks Close to Campus

Banks that allow for accounts to be fully opened and used while students are in quarantine are marked with an asterisk* below.

BMO (Bank of Montreal)

Bank of Montreal
101 Fanshawe Park Rd. East (located next to McDonald’s) 519-667-6273

To open an account please visit the BMO's website; this account will be put on hold until you come into the branch in-person with identification. 

Document & ID requirements to open an account:
  • For identification you must bring your passport (mandatory) and one piece of Canadian documentation from the following list: SIN, student visa, study permit, major Canadian credit card
  • Required documents include your Canadian visa or study permit, Government photo ID such as a passport and driver's license, proof of school registration and expected graduation date
  • If you already have a SIN and Canadian addess you can open an account online

During quarantine, you can only partially open your account; for the account to be active and for transactions to be approved, you must verify your ID in person first. This branch also does not provide pre-paid visas. 

Important links:

CIBC*

CIBC (Canadian Imperial Bank of Commerce)
228 Oxford St. East (Oxford St. & Richmond St.) 519-661-8110
97 Fanshawe Park Road East (Masonville Place parking lot) 519-661-8182

During quarantine you can open a student package remotely through email which includes a chequing account, savings account, and credit card.

To set this up you will email a copy of your passport and study permit to a representative who will then coordinate remote signing through email. Once this is done, you will have access to your new bank accounts right away. If you have to make online purchases immediately your representative can provde you with your card number in advance while your card is being mailed to your address.

Once your quarantine is over you will then need to go into the branch to set up your PIN for both your debit and credit cards. 

Important links:
CIBC business card for Michelle Fermanov-Grdanoski
CIBC business card for Linqing Ge
CIBC business card for Christopher Harwood
CIBC business card for Nicholas Pearce
CIBC business card for Vanessa Ruiz

RBC*

Royal Bank (RBC)
383 Richmond St. (located near Dundas Street) 519-661-1180

Through Royal bank you can do online banking as well as make e-transfers, but you cannot make online or web purchases without a credit card. Royal Bank also does not provide pre-paid visas, these can only be purchased from grocery stores and Shoppers Drugmart. During your quarantine you can set up a bank account over the phone (1 800 769 2511). This number will direct you to an appropriate branch, and help you set up a consultation appointment, but it is highly recommended that you book an appointment first and talk to a representative before setting up your bank account. Once your account is open, a debit card will come in the mail in 5-10 business days; you must request a credit card separately if you require one.

Document & ID requirements to open an account:
  • passport (mandatory)
  • student card with photo
  • immigration form - IMM 1442, IMM 5292
  • Canadian SIN
  • student visa
Important links:

Scotiabank

Scotiabank
109 Fanshawe Park Rd. East (at North Centre Rd.) 519-660-6902

Student accounts with Scotiabank have no montly fees and have unlimited transactions. You can open up a new account over the phone (1 888 882 3811), which will be put on hold until you visit the bank in person to verify your ID. Once you are at the bank you can pick up your debit card and apply for a credit card if you want one. You can try to do this before you arrive in Canada over the phone (416 288 3062), but your account will remain on hold until you have an opportunity to visit the bank to verify your ID before you can make transactions or transfers. Scotiabank does not provide pre-paid visas.

Document & ID requirements to open an account:
  • at least one piece of ID with a photo such as a passport
  • one piece of ID does not require a photo such as study permit
  • proof of enrolment
Important links:

TD

TD Canada Trust

1137 Richmond St. (near the University gates on Richmond St.) 519-673-6021

You may set up your account online which will then be frozen until you come to a branch in person and verify ID. TD recommends that you visit a branch in person first as you will receive a newcomer discount when you set up your new account. TD does not provide pre-paid visas.

Document & ID requirements to open an account:
  • one piece of ID with a photo and signature is required such as passport, Canadian driver's license, or Canadian government ID
  • temporary permit (IMM 1442, IMM 1208, IMM 1102)
  • proof of enrolment
Important links:

HSBC (Hong Kong and Shanghai Banking Corporation)

HSBC (Hong Kong and Shanghai Banking Corporation)
285 King St. (corner of Wellington Rd. across from Citi Plaza) 519-439-1631


For a complete list of all the banks in London look under the "Banks" section of the Yellow Pages in the London Telephone Directory or on their website. 

Automatic Teller Machines (ATMs) on Campus

  • TD Canada Trust: UCC main floor (near Bento Sushi)
  • CIBC: UCC lower level (by the Tim Horton’s)
  • Bank of Montreal: UCC lower level
  • Royal Bank of Canada: UCC lower level (by the Tim Horton's)
  • Scotiabank: UCC lower level, Huron University College food court
  • Residences with ATMs: Perth Hall, Essex Hall, Delaware Hall, Sydenham Hall, Elgin Hall and Saugeen Maitland Hall.
  • Food Service Areas with ATMs: Althouse College, Spencer Engineering Building, Law School, Somerville House, Talbot College, Medical Sciences, Natural Sciences (Nucleus), UCC Centre Spot, Thompson Recreation Centre and the Social Sciences Building.
Источник: https://www.uwo.ca/international/iesc/new_students/before_you_arrive/money_matters/banking_information.html

Welcome to Arvest

Investments and Insurance Products: Not a Deposit

What Is A Savings Account And How Does It Work?

When you need a place to keep your money that you’ll use to pay bills or cover expenses, a checking account is an obvious choice. But when you want to set money aside for future needs and goals, a savings account can be the better option.

Savings accounts allow you to deposit money for safekeeping while also earning interest on your balance. You can open a savings account at an FDIC-insured traditional bank or an NCUA-insured credit union, or with an FDIC-insured online bank. If you’re interested in opening a savings account, there are a few important things to know about how they work.

What Is a Savings Account?

A savings account is a deposit account that’s designed to hold money you don’t need or plan to spend right away. This is different from a checking account, which may allow you to write checks or make purchases and ATM withdrawals using a debit card.

Savings accounts help you stash money away for specific purposes and goals. For example, you may open a savings account to hold your emergency fund, or you could set up a down payment savings account ahead of buying a home.

While savings accounts can offer convenient access to your money, there are limits to how often you can tap into one. Until very recently, Federal Reserve Board Regulation D has limited you to six withdrawal transactions per month, including:

  • Overdraft transfers to a checking account
  • Electronic funds transfers (EFTs)
  • Automated clearing house (ACH) transfers
  • Transfers made by phone, fax, computer or mobile device
  • Wire transfers made by phone, fax, computer or mobile device
  • Check or debit card transactions

In April 2020, the Fed issued a final interim rule, giving financial institutions the option of lifting the six-per-month withdrawal restriction. However, if you go over the six transaction limit, your bank still can charge an excess withdrawal fee. The good news is that some transactions, such as transfers made via ATM or a branch, don’t count against this limit.

How Do Savings Accounts Work?

Savings accounts aren’t overly complicated. You open a savings account at a bank or credit union and deposit money into the account. The bank then pays you interest on your balance.

You can continue adding money to savings, usually through one or more of these methods, depending on the bank:

  • Cash or check deposits at the ATM
  • Cash or check deposits at a branch
  • ACH transfers from a linked bank account
  • Wire transfers from another bank account
  • Mobile check deposit
  • Direct deposit

The interest rate you earn, and the corresponding annual percentage yield, or APY, can vary from bank to bank and from account to account. The APY is the rate of interest earned on your savings when compounding interest is factored in.

So, assume you open a savings account with $1,000. You deposit $200 a month into your account and the bank pays an APY of 0.90%. After one year, your balance would be $3,419.84, $3,400 of which are your deposits and $19.84 of which is interest. The higher your APY, the more you deposit and the longer you save, the more your money can grow over time.

Benefits of Opening a Savings Account

There are several good reasons to keep money in a savings account, starting with being able to earn interest. As the previous calculation shows, savings accounts allow you to increase your money without your having to do anything extra. Although this isn’t free money—you still have to pay taxes on interest earnings—it is money you can earn passively just by saving regularly.

Savings accounts also offer more liquidity and convenience than other ways to save. A certificate of deposit or CD, for example, is another option for saving for short- and long-term goals. And, compared to some savings accounts, it’s possible to earn a better APY with a CD account.

But there’s a catch: CD accounts are time deposits, meaning that when you open one, you’re agreeing to leave your money in the CD for a set time period. While your money is in the CD, it earns interest, but you generally can’t access it without triggering a penalty before it matures. A savings account, on the other hand, would allow you up to six withdrawals per month without a penalty.

Savings accounts also are a safe way to set aside money for the future. While investing money is another way to help it grow, putting money into stocks or mutual funds can carry risk. Savings accounts, on the other hand, can offer a consistent rate of return without putting you at risk of losing money.

And, unlike investments, savings accounts can be FDIC or NCUA insured. This FDIC (or NCUA) insurance means that, even if your bank fails, your savings are protected up to certain limits ($250,000 per depositor, per account ownership category).

Types of Savings Accounts

There are different types of savings accounts you can open, depending on where you decide to bank and what your needs are. Here’s a brief look at how they compare.

Standard/Traditional Savings Accounts

Standard savings accounts are the most commonly offered savings option. You can find these at brick-and-mortar banks and credit unions.

With this type of account, you’re typically earning a lower APY. (The weekly national average savings interest rate, as reported by the FDIC, has been 0.05% APY since late August 2020.) You also may be subject to a monthly maintenance fee or minimum balance fee. These accounts are designed to be a basic savings option.

High-Yield Savings Accounts

High-yield savings accounts are just what they sound like—savings accounts that offer an above-average APY. You’re more likely to find high-yield savings accounts at online banks, although traditional banks and credit unions also can offer them. In addition to offering higher yields, due to their lower overhead, online banks also may charge fewer fees for high-yield savings accounts.

Money Market Accounts

Money market accounts combine features of a savings account with features of a checking account. This means you can earn interest on your balance, and you also can write checks or make withdrawals and purchases using a debit card.

Money market accounts may offer better rates than standard savings accounts, although they are still subject to the six withdrawals per month rule. You might choose a money market account if you want to have even more convenient access to your savings.

Kids’ and Student Savings Accounts

Kids and students also can get in on the savings action with special children’s savings accounts designed just for them. These accounts usually have an age cutoff for saving; with student accounts, for example, you may not be able to open one if you’re 25 or older.

These accounts are designed to help children, teens and students learn how to get into a savings habit, can pay interest and may or may not charge fees. You’re more likely to find these accounts at traditional banks, versus online banks.

Specialized Savings Accounts

Some banks offer special savings accounts that are designed for just one purpose. So, for example, you might be able to open a savings account just for Christmas savings or to save money for a down payment on a home.

These accounts aren’t as common as other savings options and they can sometimes come with restrictions. For instance, with a Christmas savings account, you may only be able to make a withdrawal once a year in November ahead of the holiday shopping season. A down payment account may offer a matching savings bonus, but only if you get your mortgage from the bank you opened the account with.

How To Open a Savings Account

A savings account can be helpful for saving money toward various financial goals, and it pays to do your research when opening one. Otherwise, you could end up with a savings account mismatch.

When you’re ready to open a savings account, first think about which type of account may be most helpful. For example, either a standard or high-yield savings account could be the right choice for an emergency fund. But, if you’re saving money to pay cash for a car, you might want to choose a money market account instead that would let you write a check for the purchase.

Also, consider how much money you have to save. Some banks may require you to have a few hundred or even a few thousand dollars to open a savings account. An online bank, on the other hand, may allow you to start saving with as little as $1.

Next, consider the fees and the APY you can earn with a savings account. Ideally, you should choose an account that has the highest APY with the lowest fees. The more fees you pay, the less of your interest earnings you get to keep. Also, check to see if the APY you can earn applies to all balances. Some banks have interest tiers based on your balance, meaning you have to save more money to get the highest APY.

Finally, think about whether you’d prefer to save money with an online bank versus a brick-and-mortar bank or credit union, as well as the different options you have for dipping into your savings when necessary. Online and mobile banking can make your money accessible, but you also may be interested in ATM access or being able to visit a branch. Looking at all the options can help you narrow down which savings account is right for you.

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Источник: https://www.forbes.com/advisor/banking/what-is-a-savings-account/

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